Deduction U/s. 80-IB(10) not eligible if return not filed within due date, as prescribed U/s. 139(1)

Dy. CIT Vs. M/s. Siroya.Developers (ITAT Mumbai)

A perusal of this section r80AC eveals that mandate of this section is very clear that to avail the benefit of deduction u/s 80IB, the assessee is required to file return within the due date as prescribed u/s 139(1) of the Act. It is noted that section 139(4) was existing when section 80AC was brought on the statute and thus, the legislature was conscious of this fact that return could be filed within the extended time as prescribed u/s 139(4), but the legislature chose to grant the benefit of deduction only when the return was filed u/s 139(1). If the intention was to grant the benefit of deduction, even in those cases when the return was filed u/s 139(4), then the same would have been mentioned by the legislature in section 80AC that return is filed u/s 139(1) or within the time extended by section 139(4). It appears that the whole objective of bringing section 80AC was to encourage the assessees to file the return within time as stipulated u/s 139(1) and to discourage them from late filing of return.

Since assessee failed to fulfill the condition of filing of return under section 139(1), therefore, AO was justified in denying the benefit of deduction under section 80-IB(10) to assessee in view of provisions of section 80AC.

FULL TEXT OF ITAT ORDER IS AS FOLLOWS:

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